General Motors Acceptance Corporation (GMAC), an automotive financial service provider, announced today that it has received Chinese government approval to become the first foreign company to offer automotive financing services in China.

GMAC, a wholly owned subsidiary of General Motors, and its Chinese partner Shanghai Automotive Group Finance Co. (SAICFC), were granted approval today by the China Banking Regulatory Commission (CBRC) for the establishment of GMAC-SAIC Auto Finance Company. GMAC will hold a 60% stake and SAICFC a 40% stake in the joint venture, which will have registered capital of RMB 500 million (£33m).

Headquartered in Shanghai, the new joint venture is expected to start doing business shortly. It will initially offer wholesale and retail financing for vehicles manufactured by GM's joint ventures with Shanghai Automotive Industry Corporation Group (SAIC).

Richard J.S. Clout, president of GMAC international operations, says: "We are fully prepared to bring to the market our 85 years of specialized automotive financing expertise and begin offering our industry-leading products. Our new joint venture will contribute to the maturation of China's vehicle market while making GM products available to a greater number of consumers."

Clout added that GMAC sees great potential for automotive financing in China. "On a global basis, automakers sell about 70% of their vehicles via financing. In China, however, only 15-20% of vehicles are sold through financing. We expect the situation to change quickly, with automotive financing in China growing 60-80% in the coming years."